The Disappearing Blacklist: A New Chapter in the US-China Tech Cold War
In a move emblematic of the volatile geopolitics surrounding artificial intelligence, the US Department of Defense (DoD) briefly published—and then abruptly removed—a list identifying several major Chinese technology firms, including e-commerce and cloud giant Alibaba and search and AI leader Baidu, as companies allegedly connected to China's military. The incident, reported by Bloomberg on February 13, 2026, created immediate confusion and underscores the precarious balancing act between national security and economic interdependence in the age of AI.
The List That Vanished
The list was published under the auspices of Section 1260H of the National Defense Authorization Act (NDAA), a provision designed to identify "Chinese military companies" operating directly or indirectly in the United States. Inclusion on such a list can have severe consequences, potentially restricting US investment and limiting the companies' access to American technology and capital markets. While the specific rationale for each company's inclusion was not detailed in the brief publication, the focus on leading AI and cloud infrastructure providers like Alibaba and Baidu points directly to Washington's deepening concerns over the civil-military fusion doctrine in China, where technological advancements in the commercial sector are systematically leveraged for military modernization.
The Immediate Fallout and Strategic Ambiguity
The swift removal of the list from the DoD website suggests significant internal debate or potential diplomatic recalibration. This creates a state of strategic ambiguity. Were the listings premature, based on insufficient evidence? Was their publication a trial balloon to gauge reaction, or did it prompt immediate backlash from US businesses with deep ties to these Chinese partners? The incident leaves the affected companies in limbo—publicly stigmatized but not formally sanctioned—and investors navigating a fog of uncertainty. For Alibaba and Baidu, which have global cloud and AI ambitions, even transient association with the Chinese military can damage international trust and partnership opportunities.
The Broader Context: An AI Ecosystem at Odds
This episode cannot be viewed in isolation. It occurs against a backdrop of relentless technological competition. On the very same day, Bloomberg reported that Anthropic, a leading US AI safety and research company, secured a monumental $30 billion in new funding, doubling its valuation to an astonishing $380 billion. This staggering sum, likely from a consortium of tech giants and investment firms, highlights the unprecedented capital being deployed to ensure Western leadership in foundational AI models.
The contrast is stark: as the US government grapples with how to handle Chinese AI giants, its private sector is mobilizing historic resources to build and control the next generation of AI. This dual-track approach—aggressive geopolitical containment paired with massive domestic investment—defines the current US strategy.
Implications for Global AI Governance and Supply Chains
The vanishing blacklist incident has several critical implications:
- Escalating Decoupling: It signals that the decoupling of US and Chinese tech ecosystems is accelerating into the most sensitive areas: artificial intelligence and dual-use technologies. Every component, from semiconductors to cloud algorithms, is now viewed through a national security lens.
- The 'Chilling Effect': Even without formal sanctions, the threat of listing creates a powerful deterrent. Global firms may preemptively distance themselves from Chinese AI partners to avoid future regulatory complications, effectively enacting a soft blockade.
- Fragmentation of AI: The world may be heading toward a fragmented AI landscape—a "Splinternet" for AI—with separate technological stacks, standards, and governance models led by the US and China. This threatens global scientific collaboration and could lead to incompatible, and potentially less safe, AI systems.
What Comes Next?
The DoD's next steps are crucial. A clarified, legally-vetted list may still emerge, potentially with a more narrow focus on specific subsidiaries or technologies rather than entire corporate conglomerates. Alternatively, the US might shift tactics, using export controls on specific AI chips and tools (as it has with companies like SMIC and Huawei) rather than broad corporate blacklists.
For Alibaba, Baidu, and others, the path forward involves navigating this hostility while striving for technological self-sufficiency. China's response will likely be increased state support for its domestic AI industry, accelerating its drive for independence from Western semiconductor and software supply chains.
The events of February 13, 2026, are a reminder that in the AI race, code and algorithms are only part of the story. The real battle is increasingly waged through policy documents, investment announcements, and lists that appear—and disappear—on government websites.
Source: Bloomberg Tech, February 13, 2026.